diff --git a/.gitignore b/.gitignore
index 4c0d217d06..370eba9a90 100644
--- a/.gitignore
+++ b/.gitignore
@@ -41,3 +41,5 @@ libpeerconnection.log
 node_modules
 vendor/bundle/
 coverage
+/reports/
+!/reports/README.md
diff --git a/app/assets/javascripts/admin/variant_overrides/controllers/variant_overrides_controller.js.coffee b/app/assets/javascripts/admin/variant_overrides/controllers/variant_overrides_controller.js.coffee
index 0fe051f496..6b7cea8243 100644
--- a/app/assets/javascripts/admin/variant_overrides/controllers/variant_overrides_controller.js.coffee
+++ b/app/assets/javascripts/admin/variant_overrides/controllers/variant_overrides_controller.js.coffee
@@ -13,6 +13,11 @@ angular.module("admin.variantOverrides").controller "AdminVariantOverridesCtrl",
   $scope.RequestMonitor = RequestMonitor
   $scope.selectView = Views.selectView
   $scope.currentView = -> Views.currentView
+  $scope.onDemandOptions = [
+    { description: t('js.variant_overrides.on_demand.use_producer_settings'), value: null },
+    { description: t('js.variant_overrides.on_demand.yes'), value: true },
+    { description: t('js.variant_overrides.on_demand.no'), value: false }
+  ]
 
   $scope.views = Views.setViews
     inventory:    { name: t('js.variant_overrides.inventory_products'), visible: true }
@@ -105,3 +110,35 @@ angular.module("admin.variantOverrides").controller "AdminVariantOverridesCtrl",
         StatusMessage.display 'success', t('js.variant_overrides.stock_reset')
       .error (data, status) ->
         $timeout -> StatusMessage.display 'failure', $scope.updateError(data, status)
+
+  # Variant override count_on_hand field placeholder logic:
+  #     on_demand true  -- Show "On Demand"
+  #     on_demand false -- Show empty value to be set by the user
+  #     on_demand nil   -- Show producer on_hand value
+  $scope.countOnHandPlaceholder = (variant, hubId) ->
+    variantOverride = $scope.variantOverrides[hubId][variant.id]
+
+    if variantOverride.on_demand
+      t('js.variants.on_demand.yes')
+    else if variantOverride.on_demand == false
+      ''
+    else
+      variant.on_hand
+
+  # This method should only be used when the variant override on_demand is changed.
+  #
+  # Change the count_on_hand value to a suggested value.
+  $scope.updateCountOnHand = (variant, hubId) ->
+    variantOverride = $scope.variantOverrides[hubId][variant.id]
+
+    suggested = $scope.countOnHandSuggestion(variant, hubId)
+    return if suggested == variantOverride.count_on_hand
+    variantOverride.count_on_hand = suggested
+    DirtyVariantOverrides.set hubId, variant.id, variantOverride.id, 'count_on_hand', suggested
+
+  # Suggest producer count_on_hand if variant has limited stock and variant override forces limited
+  # stock. Otherwise, clear whatever value is set.
+  $scope.countOnHandSuggestion = (variant, hubId) ->
+    variantOverride = $scope.variantOverrides[hubId][variant.id]
+    return null unless !variant.on_demand && variantOverride.on_demand == false
+    variant.on_hand
diff --git a/app/assets/stylesheets/admin/components/input.css.scss b/app/assets/stylesheets/admin/components/input.css.scss
new file mode 100644
index 0000000000..5b4cf8ed05
--- /dev/null
+++ b/app/assets/stylesheets/admin/components/input.css.scss
@@ -0,0 +1,10 @@
+@import '../../darkswarm/branding';
+
+.container {
+  input {
+    &[readonly] {
+      background-color: $disabled-light;
+      cursor: default;
+    }
+  }
+}
diff --git a/app/models/concerns/stock_settings_override_validation.rb b/app/models/concerns/stock_settings_override_validation.rb
new file mode 100644
index 0000000000..b9e3624aec
--- /dev/null
+++ b/app/models/concerns/stock_settings_override_validation.rb
@@ -0,0 +1,41 @@
+module StockSettingsOverrideValidation
+  extend ActiveSupport::Concern
+
+  included do
+    before_validation :require_compatible_on_demand_and_count_on_hand
+  end
+
+  def require_compatible_on_demand_and_count_on_hand
+    disallow_count_on_hand_if_using_producer_stock_settings
+    disallow_count_on_hand_if_on_demand
+    require_count_on_hand_if_limited_stock
+  end
+
+  def disallow_count_on_hand_if_using_producer_stock_settings
+    return unless on_demand.nil? && count_on_hand.present?
+
+    error_message = I18n.t("count_on_hand.using_producer_stock_settings_but_count_on_hand_set",
+                           scope: i18n_scope_for_stock_settings_override_validation_error)
+    errors.add(:count_on_hand, error_message)
+  end
+
+  def disallow_count_on_hand_if_on_demand
+    return unless on_demand? && count_on_hand.present?
+
+    error_message = I18n.t("count_on_hand.on_demand_but_count_on_hand_set",
+                           scope: i18n_scope_for_stock_settings_override_validation_error)
+    errors.add(:count_on_hand, error_message)
+  end
+
+  def require_count_on_hand_if_limited_stock
+    return unless on_demand == false && count_on_hand.blank?
+
+    error_message = I18n.t("count_on_hand.limited_stock_but_no_count_on_hand",
+                           scope: i18n_scope_for_stock_settings_override_validation_error)
+    errors.add(:count_on_hand, error_message)
+  end
+
+  def i18n_scope_for_stock_settings_override_validation_error
+    "activerecord.errors.models.#{self.class.name.underscore}"
+  end
+end
diff --git a/app/models/product_import/entry_validator.rb b/app/models/product_import/entry_validator.rb
index b7f055e445..11c0aab7dd 100644
--- a/app/models/product_import/entry_validator.rb
+++ b/app/models/product_import/entry_validator.rb
@@ -68,6 +68,18 @@ module ProductImport
 
     private
 
+    def find_or_initialize_variant_override(entry, existing_variant)
+      existing_variant_override = VariantOverride.where(
+        variant_id: existing_variant.id,
+        hub_id: entry.enterprise_id
+      ).first
+
+      existing_variant_override || VariantOverride.new(
+        variant_id: existing_variant.id,
+        hub_id: entry.enterprise_id
+      )
+    end
+
     def enterprise_validation(entry)
       return if name_presence_error entry
       return if enterprise_not_found_error entry
@@ -310,21 +322,12 @@ module ProductImport
     end
 
     def create_inventory_item(entry, existing_variant)
-      existing_variant_override = VariantOverride.where(
-        variant_id: existing_variant.id,
-        hub_id: entry.enterprise_id
-      ).first
+      find_or_initialize_variant_override(entry, existing_variant).tap do |variant_override|
+        check_variant_override_stock_settings(entry, variant_override)
 
-      variant_override = existing_variant_override || VariantOverride.new(
-        variant_id: existing_variant.id,
-        hub_id: entry.enterprise_id
-      )
-
-      variant_override.assign_attributes(count_on_hand: entry.on_hand, import_date: @import_time)
-      check_on_hand_nil(entry, variant_override)
-      variant_override.assign_attributes(entry.attributes.slice('price', 'on_demand'))
-
-      variant_override
+        variant_override.assign_attributes(import_date: @import_time)
+        variant_override.assign_attributes(entry.attributes.slice('price', 'on_demand'))
+      end
     end
 
     def mark_as_inventory_item(entry, variant_override)
@@ -355,5 +358,11 @@ module ProductImport
       object.count_on_hand = 0 if object.respond_to?(:count_on_hand)
       entry.on_hand_nil = true
     end
+
+    def check_variant_override_stock_settings(entry, object)
+      object.count_on_hand = entry.on_hand.presence
+      object.on_demand = object.count_on_hand.blank? if entry.on_demand.blank?
+      entry.on_hand_nil = object.count_on_hand.blank?
+    end
   end
 end
diff --git a/app/models/variant_override.rb b/app/models/variant_override.rb
index 89d2fdcd13..dd3b22a5e0 100644
--- a/app/models/variant_override.rb
+++ b/app/models/variant_override.rb
@@ -1,5 +1,6 @@
 class VariantOverride < ActiveRecord::Base
   extend Spree::LocalizedNumber
+  include StockSettingsOverrideValidation
 
   acts_as_taggable
 
@@ -82,7 +83,7 @@ class VariantOverride < ActiveRecord::Base
   def reset_stock!
     if resettable
       if default_stock?
-        self.attributes = { count_on_hand: default_stock }
+        self.attributes = { on_demand: false, count_on_hand: default_stock }
         self.save
       else
         Bugsnag.notify RuntimeError.new "Attempting to reset stock level for a variant with no default stock level."
diff --git a/app/views/admin/variant_overrides/_products_variants.html.haml b/app/views/admin/variant_overrides/_products_variants.html.haml
index 7c530a1cb2..27de58fdec 100644
--- a/app/views/admin/variant_overrides/_products_variants.html.haml
+++ b/app/views/admin/variant_overrides/_products_variants.html.haml
@@ -8,9 +8,9 @@
   %td.price{ ng: { show: 'columns.price.visible' } }
     %input{name: 'variant-overrides-{{ variant.id }}-price', type: 'text', ng: {model: 'variantOverrides[hub_id][variant.id].price'}, placeholder: '{{ variant.price }}', 'ofn-track-variant-override' => 'price'}
   %td.on_hand{ ng: { show: 'columns.on_hand.visible' } }
-    %input{name: 'variant-overrides-{{ variant.id }}-count_on_hand', type: 'text', ng: {model: 'variantOverrides[hub_id][variant.id].count_on_hand'}, placeholder: '{{ variant.on_hand }}', 'ofn-track-variant-override' => 'count_on_hand'}
+    %input{name: 'variant-overrides-{{ variant.id }}-count_on_hand', type: 'text', ng: { model: 'variantOverrides[hub_id][variant.id].count_on_hand', readonly: 'variantOverrides[hub_id][variant.id].on_demand != false' }, placeholder: '{{ countOnHandPlaceholder(variant, hub_id) }}', 'ofn-track-variant-override' => 'count_on_hand'}
   %td.on_demand{ ng: { show: 'columns.on_demand.visible' } }
-    %input.field{ :type => 'checkbox', name: 'variant-overrides-{{ variant.id }}-on_demand', ng: { model: 'variantOverrides[hub_id][variant.id].on_demand' }, 'ofn-track-variant-override' => 'on_demand' }
+    %select{ name: 'variant-overrides-{{ variant.id }}-on_demand', ng: { model: 'variantOverrides[hub_id][variant.id].on_demand', change: 'updateCountOnHand(variant, hub_id)', options: 'option.value as option.description for option in onDemandOptions' }, 'ofn-track-variant-override' => 'on_demand' }
   %td.reset{ ng: { show: 'columns.reset.visible' } }
     %input{name: 'variant-overrides-{{ variant.id }}-resettable', type: 'checkbox', ng: {model: 'variantOverrides[hub_id][variant.id].resettable'}, placeholder: '{{ variant.resettable }}', 'ofn-track-variant-override' => 'resettable'}
   %td.reset{ ng: { show: 'columns.reset.visible' } }
@@ -24,4 +24,4 @@
     %button.icon-remove.hide.fullwidth{ :type => 'button', ng: { click: "setVisibility(hub_id,variant.id,false)" } }
       = t('admin.variant_overrides.index.hide')
   %td.import_date{ ng: { show: 'columns.import_date.visible' } }
-    %span {{variantOverrides[hub_id][variant.id].import_date | date:"MMMM dd, yyyy HH:mm"}}
\ No newline at end of file
+    %span {{variantOverrides[hub_id][variant.id].import_date | date:"MMMM dd, yyyy HH:mm"}}
diff --git a/config/application.rb b/config/application.rb
index 14c0b82b86..f80c91aee1 100644
--- a/config/application.rb
+++ b/config/application.rb
@@ -88,6 +88,7 @@ module Openfoodnetwork
 
     # Custom directories with classes and modules you want to be autoloadable.
     config.autoload_paths += %W(
+      #{config.root}/app/models/concerns
       #{config.root}/app/presenters
       #{config.root}/app/jobs
     )
diff --git a/config/locales/en.yml b/config/locales/en.yml
index 38bb9aa788..5775c90452 100644
--- a/config/locales/en.yml
+++ b/config/locales/en.yml
@@ -47,6 +47,11 @@ en:
           attributes:
             orders_close_at:
               after_orders_open_at: must be after open date
+        variant_override:
+          count_on_hand:
+            using_producer_stock_settings_but_count_on_hand_set: "must be blank because using producer stock settings"
+            on_demand_but_count_on_hand_set: "must be blank if on demand"
+            limited_stock_but_no_count_on_hand: "must be specified because forcing limited stock"
   activemodel:
     errors:
       models:
@@ -2592,7 +2597,14 @@ See the %{link} to find out more about %{sitename}'s features and to start using
         in your cart have reduced. Here's what's changed:
       now_out_of_stock: is now out of stock.
       only_n_remainging: "now only has %{num} remaining."
+    variants:
+      on_demand:
+        "yes": "On demand"
     variant_overrides:
+      on_demand:
+        use_producer_settings: "Use producer stock settings"
+        "yes": "Yes"
+        "no": "No"
       inventory_products: "Inventory Products"
       hidden_products: "Hidden Products"
       new_products: "New Products"
diff --git a/db/migrate/20181128054803_simplify_variant_override_stock_settings.rb b/db/migrate/20181128054803_simplify_variant_override_stock_settings.rb
new file mode 100644
index 0000000000..6627dca015
--- /dev/null
+++ b/db/migrate/20181128054803_simplify_variant_override_stock_settings.rb
@@ -0,0 +1,165 @@
+# This simplifies variant overrides to have only the following combinations:
+#
+#    on_demand | count_on_hand
+#   -----------+---------------
+#    true      | nil
+#    false     | set
+#    nil       | nil
+#
+# Refer to the table {here}[https://github.com/openfoodfoundation/openfoodnetwork/issues/3067] for
+# the effect of different variant and variant override stock configurations.
+#
+# Furthermore, this will allow all existing variant overrides to satisfy the newly added model
+# validation rules.
+class SimplifyVariantOverrideStockSettings < ActiveRecord::Migration
+  class VariantOverride < ActiveRecord::Base
+    belongs_to :variant
+    belongs_to :hub, class_name: "Enterprise"
+
+    scope :with_count_on_hand, -> { where("count_on_hand IS NOT NULL") }
+    scope :without_count_on_hand, -> { where(count_on_hand: nil) }
+  end
+
+  class Variant < ActiveRecord::Base
+    self.table_name = "spree_variants"
+
+    belongs_to :product
+
+    def name
+      namer = OpenFoodNetwork::OptionValueNamer.new(self)
+      namer.name
+    end
+  end
+
+  class Product < ActiveRecord::Base
+    self.table_name = "spree_products"
+
+    belongs_to :supplier, class_name: "Enterprise"
+  end
+
+  class Enterprise < ActiveRecord::Base; end
+
+  def up
+    ensure_reports_path_exists
+
+    CSV.open(csv_path, "w") do |csv|
+      csv << csv_header_row
+
+      update_use_producer_stock_settings_with_count_on_hand(csv)
+      update_on_demand_with_count_on_hand(csv)
+      update_limited_stock_without_count_on_hand(csv)
+    end
+
+    split_csv_by_distributor
+  end
+
+  def down
+    CSV.foreach(csv_path, headers: true) do |row|
+      VariantOverride.where(id: row["variant_override_id"])
+        .update_all(on_demand: row["previous_on_demand"],
+                    count_on_hand: row["previous_count_on_hand"])
+    end
+  end
+
+  private
+
+  def reports_path
+    Rails.root.join("reports", "SimplifyVariantOverrideStockSettings")
+  end
+
+  def ensure_reports_path_exists
+    Dir.mkdir(reports_path) unless File.exist?(reports_path)
+  end
+
+  def csv_path
+    reports_path.join("changed_variant_overrides.csv")
+  end
+
+  def distributor_csv_path(name, id)
+    reports_path.join("changed_variant_overrides-#{name.parameterize('_')}-#{id}.csv")
+  end
+
+  # When on_demand is nil but count_on_hand is set, force limited stock.
+  def update_use_producer_stock_settings_with_count_on_hand(csv)
+    variant_overrides = VariantOverride.where(on_demand: nil).with_count_on_hand
+    update_variant_overrides_and_log(csv, variant_overrides) do |variant_override|
+      variant_override.update_attributes!(on_demand: false)
+    end
+  end
+
+  # Clear count_on_hand if forcing on demand.
+  def update_on_demand_with_count_on_hand(csv)
+    variant_overrides = VariantOverride.where(on_demand: true).with_count_on_hand
+    update_variant_overrides_and_log(csv, variant_overrides) do |variant_override|
+      variant_override.update_attributes!(count_on_hand: nil)
+    end
+  end
+
+  # When on_demand is false but count on hand is not specified, set this to use producer stock
+  # settings.
+  def update_limited_stock_without_count_on_hand(csv)
+    variant_overrides = VariantOverride.where(on_demand: false).without_count_on_hand
+    update_variant_overrides_and_log(csv, variant_overrides) do |variant_override|
+      variant_override.update_attributes!(on_demand: nil)
+    end
+  end
+
+  def update_variant_overrides_and_log(csv, variant_overrides)
+    variant_overrides.find_each do |variant_override|
+      csv << variant_override_log_row(variant_override) do
+        yield variant_override
+      end
+    end
+  end
+
+  def csv_header_row
+    %w(
+      variant_override_id
+      distributor_name distributor_id
+      producer_name producer_id
+      product_name product_id
+      variant_description variant_id
+      previous_on_demand previous_count_on_hand
+      updated_on_demand updated_count_on_hand
+    )
+  end
+
+  def variant_override_log_row(variant_override)
+    variant = variant_override.variant
+    distributor = variant_override.hub
+    product = variant.andand.product
+    supplier = product.andand.supplier
+
+    row = [
+      variant_override.id,
+      distributor.andand.name, distributor.andand.id,
+      supplier.andand.name, supplier.andand.id,
+      product.andand.name, product.andand.id,
+      variant.andand.name, variant.andand.id,
+      variant_override.on_demand, variant_override.count_on_hand
+    ]
+
+    yield variant_override
+
+    row + [variant_override.on_demand, variant_override.count_on_hand]
+  end
+
+  def split_csv_by_distributor
+    table = CSV.read(csv_path)
+    distributor_ids = table[1..-1].map { |row| row[2] }.uniq # Don't use the header row.
+
+    distributor_ids.each do |distributor_id|
+      distributor_data_rows = filter_data_rows_for_distributor(table[1..-1], distributor_id)
+      distributor_name = distributor_data_rows.first[1]
+
+      CSV.open(distributor_csv_path(distributor_name, distributor_id), "w") do |csv|
+        csv << table[0] # Header row
+        distributor_data_rows.each { |row| csv << row }
+      end
+    end
+  end
+
+  def filter_data_rows_for_distributor(data_rows, distributor_id)
+    data_rows.select { |row| row[2] == distributor_id }
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index 7f3b49ca3c..8f067d9bb7 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -11,7 +11,7 @@
 #
 # It's strongly recommended to check this file into your version control system.
 
-ActiveRecord::Schema.define(:version => 20181123012635) do
+ActiveRecord::Schema.define(:version => 20181128054803) do
 
   create_table "account_invoices", :force => true do |t|
     t.integer  "user_id",    :null => false
diff --git a/reports/README.md b/reports/README.md
new file mode 100644
index 0000000000..84c8566c33
--- /dev/null
+++ b/reports/README.md
@@ -0,0 +1,4 @@
+## `reports/` Directory
+
+This directory may be used for reports generated for the OFN instance. For example, a database
+migration may save in this directory a spreadsheet of changes it made during execution.
diff --git a/spec/factories.rb b/spec/factories.rb
index 8751094d45..eee3cb553f 100644
--- a/spec/factories.rb
+++ b/spec/factories.rb
@@ -189,9 +189,20 @@ FactoryBot.define do
 
   factory :variant_override, :class => VariantOverride do
     price         77.77
+    on_demand false
     count_on_hand 11111
     default_stock 2000
     resettable  false
+
+    trait :on_demand do
+      on_demand true
+      count_on_hand nil
+    end
+
+    trait :use_producer_stock_settings do
+      on_demand nil
+      count_on_hand nil
+    end
   end
 
   factory :inventory_item, :class => InventoryItem do
diff --git a/spec/features/admin/variant_overrides_spec.rb b/spec/features/admin/variant_overrides_spec.rb
index 60130ddc6d..f2b0bb916b 100644
--- a/spec/features/admin/variant_overrides_spec.rb
+++ b/spec/features/admin/variant_overrides_spec.rb
@@ -140,8 +140,8 @@ feature %q{
 
             fill_in "variant-overrides-#{variant.id}-sku", with: 'NEWSKU'
             fill_in "variant-overrides-#{variant.id}-price", with: '777.77'
+            select_on_demand variant, :no
             fill_in "variant-overrides-#{variant.id}-count_on_hand", with: '123'
-            check "variant-overrides-#{variant.id}-on_demand"
             page.should have_content "Changes to one override remain unsaved."
 
             expect do
@@ -154,14 +154,15 @@ feature %q{
             vo.hub_id.should == hub.id
             vo.sku.should == "NEWSKU"
             vo.price.should == 777.77
+            expect(vo.on_demand).to eq(false)
             vo.count_on_hand.should == 123
-            vo.on_demand.should == true
           end
 
           describe "creating and then updating the new override" do
             it "updates the same override instead of creating a duplicate" do
               # When I create a new override
               fill_in "variant-overrides-#{variant.id}-price", with: '777.77'
+              select_on_demand variant, :no
               fill_in "variant-overrides-#{variant.id}-count_on_hand", with: '123'
               page.should have_content "Changes to one override remain unsaved."
 
@@ -186,6 +187,7 @@ feature %q{
               vo.variant_id.should == variant.id
               vo.hub_id.should == hub.id
               vo.price.should == 111.11
+              expect(vo.on_demand).to eq(false)
               vo.count_on_hand.should == 111
             end
           end
@@ -218,7 +220,7 @@ feature %q{
         end
 
         context "with overrides" do
-          let!(:vo) { create(:variant_override, variant: variant, hub: hub, price: 77.77, count_on_hand: 11111, default_stock: 1000, resettable: true, tag_list: ["tag1","tag2","tag3"]) }
+          let!(:vo) { create(:variant_override, :on_demand, variant: variant, hub: hub, price: 77.77, default_stock: 1000, resettable: true, tag_list: ["tag1","tag2","tag3"]) }
           let!(:vo_no_auth) { create(:variant_override, variant: variant, hub: hub2, price: 1, count_on_hand: 2) }
           let!(:product2) { create(:simple_product, supplier: producer, variant_unit: 'weight', variant_unit_scale: 1) }
           let!(:variant2) { create(:variant, product: product2, unit_value: 8, price: 1.00, on_hand: 12) }
@@ -235,11 +237,15 @@ feature %q{
 
           it "product values are affected by overrides" do
             page.should have_input "variant-overrides-#{variant.id}-price", with: '77.77', placeholder: '1.23'
-            page.should have_input "variant-overrides-#{variant.id}-count_on_hand", with: '11111', placeholder: '12'
+            expect(page).to have_input "variant-overrides-#{variant.id}-count_on_hand", with: "", placeholder: I18n.t("js.variants.on_demand.yes")
+            expect(page).to have_select "variant-overrides-#{variant.id}-on_demand", selected: I18n.t("js.variant_overrides.on_demand.yes")
+
+            expect(page).to have_input "variant-overrides-#{variant2.id}-count_on_hand", with: "40", placeholder: ""
           end
 
           it "updates existing overrides" do
             fill_in "variant-overrides-#{variant.id}-price", with: '22.22'
+            select_on_demand variant, :no
             fill_in "variant-overrides-#{variant.id}-count_on_hand", with: '8888'
             page.should have_content "Changes to one override remain unsaved."
 
@@ -252,13 +258,36 @@ feature %q{
             vo.variant_id.should == variant.id
             vo.hub_id.should == hub.id
             vo.price.should == 22.22
+            expect(vo.on_demand).to eq(false)
             vo.count_on_hand.should == 8888
           end
 
+          it "updates on_demand settings" do
+            select_on_demand variant, :no
+            click_button I18n.t("save_changes")
+            expect(page).to have_content I18n.t("js.changes_saved")
+
+            vo.reload
+            expect(vo.on_demand).to eq(false)
+
+            select_on_demand variant, :yes
+            click_button I18n.t("save_changes")
+            expect(page).to have_content I18n.t("js.changes_saved")
+
+            vo.reload
+            expect(vo.on_demand).to eq(true)
+
+            select_on_demand variant, :use_producer_settings
+            click_button I18n.t("save_changes")
+            expect(page).to have_content I18n.t("js.changes_saved")
+
+            vo.reload
+            expect(vo.on_demand).to be_nil
+          end
+
           # Any new fields added to the VO model need to be added to this test
           it "deletes overrides when values are cleared" do
             first("div#columns-dropdown", :text => "COLUMNS").click
-            first("div#columns-dropdown div.menu div.menu_item", text: "On Demand").click
             first("div#columns-dropdown div.menu div.menu_item", text: "Enable Stock Reset?").click
             first("div#columns-dropdown div.menu div.menu_item", text: "Tags").click
             first("div#columns-dropdown", :text => "COLUMNS").click
@@ -272,6 +301,7 @@ feature %q{
             # Clearing values manually
             fill_in "variant-overrides-#{variant.id}-price", with: ''
             fill_in "variant-overrides-#{variant.id}-count_on_hand", with: ''
+            select_on_demand variant, :use_producer_settings
             fill_in "variant-overrides-#{variant.id}-default_stock", with: ''
             within "tr#v_#{variant.id}" do
               vo.tag_list.each do |tag|
@@ -297,7 +327,7 @@ feature %q{
             first("div#bulk-actions-dropdown div.menu div.menu_item", text: "Reset Stock Levels To Defaults").click
             page.should have_content 'Stocks reset to defaults.'
             vo.reload
-            page.should have_input "variant-overrides-#{variant.id}-count_on_hand", with: '1000', placeholder: '12'
+            expect(page).to have_input "variant-overrides-#{variant.id}-count_on_hand", with: "1000", placeholder: ""
             vo.count_on_hand.should == 1000
           end
 
@@ -305,7 +335,7 @@ feature %q{
             first("div#bulk-actions-dropdown").click
             first("div#bulk-actions-dropdown div.menu div.menu_item", text: "Reset Stock Levels To Defaults").click
             vo_no_reset.reload
-            page.should have_input "variant-overrides-#{variant2.id}-count_on_hand", with: '40', placeholder: '12'
+            expect(page).to have_input "variant-overrides-#{variant2.id}-count_on_hand", with: "40", placeholder: ""
             vo_no_reset.count_on_hand.should == 40
           end
 
@@ -315,9 +345,52 @@ feature %q{
             first("div#bulk-actions-dropdown div.menu div.menu_item", text: "Reset Stock Levels To Defaults").click
             page.should have_content "Save changes first"
           end
+
+          describe "ensuring that on demand and count on hand settings are compatible" do
+            it "clears count on hand when not limited stock" do
+              # It clears count_on_hand when selecting true on_demand.
+              select_on_demand variant, :no
+              fill_in "variant-overrides-#{variant.id}-count_on_hand", with: "200"
+              select_on_demand variant, :yes
+              expect(page).to have_input "variant-overrides-#{variant.id}-count_on_hand", with: ""
+
+              # It clears count_on_hand when selecting nil on_demand.
+              select_on_demand variant, :no
+              fill_in "variant-overrides-#{variant.id}-count_on_hand", with: "200"
+              select_on_demand variant, :use_producer_settings
+              expect(page).to have_input "variant-overrides-#{variant.id}-count_on_hand", with: ""
+
+              # It saves the changes.
+              click_button I18n.t("save_changes")
+              expect(page).to have_content I18n.t("js.changes_saved")
+              vo.reload
+              expect(vo.count_on_hand).to be_nil
+              expect(vo.on_demand).to be_nil
+            end
+
+            it "provides explanation when attempting to save variant override with incompatible stock settings" do
+              # Successfully change stock settings.
+              select_on_demand variant, :no
+              fill_in "variant-overrides-#{variant.id}-count_on_hand", with: "1111"
+              click_button I18n.t("save_changes")
+              expect(page).to have_content I18n.t("js.changes_saved")
+
+              # Make stock settings incompatible.
+              select_on_demand variant, :no
+              fill_in "variant-overrides-#{variant.id}-count_on_hand", with: ""
+
+              # It does not save the changes.
+              click_button I18n.t("save_changes")
+              expect(page).to have_content I18n.t("activerecord.errors.models.variant_override.count_on_hand.limited_stock_but_no_count_on_hand")
+              expect(page).to have_no_content I18n.t("js.changes_saved")
+
+              vo.reload
+              expect(vo.count_on_hand).to eq(1111)
+              expect(vo.on_demand).to eq(false)
+            end
+          end
         end
       end
-
     end
 
     describe "when manually placing an order" do
@@ -382,4 +455,9 @@ feature %q{
       end
     end
   end
+
+  def select_on_demand(variant, value_sym)
+    option_label = I18n.t(value_sym, scope: "js.variant_overrides.on_demand")
+    select option_label, from: "variant-overrides-#{variant.id}-on_demand"
+  end
 end
diff --git a/spec/features/consumer/shopping/variant_overrides_spec.rb b/spec/features/consumer/shopping/variant_overrides_spec.rb
index ff101fd5a0..6fb52c3e1f 100644
--- a/spec/features/consumer/shopping/variant_overrides_spec.rb
+++ b/spec/features/consumer/shopping/variant_overrides_spec.rb
@@ -22,7 +22,7 @@ feature "shopping with variant overrides defined", js: true, retry: 3 do
   let(:v4) { create(:variant, product: p1, price: 44.44, unit_value: 4) }
   let(:v5) { create(:variant, product: p3, price: 55.55, unit_value: 5, on_demand: true) }
   let(:v6) { create(:variant, product: p3, price: 66.66, unit_value: 6, on_demand: true) }
-  let!(:vo1) { create(:variant_override, hub: hub, variant: v1, price: 55.55, count_on_hand: nil, default_stock: nil, resettable: false) }
+  let!(:vo1) { create(:variant_override, :use_producer_stock_settings, hub: hub, variant: v1, price: 55.55, default_stock: nil, resettable: false) }
   let!(:vo2) { create(:variant_override, hub: hub, variant: v2, count_on_hand: 0, default_stock: nil, resettable: false) }
   let!(:vo3) { create(:variant_override, hub: hub, variant: v3, count_on_hand: 0, default_stock: nil, resettable: false) }
   let!(:vo4) { create(:variant_override, hub: hub, variant: v4, count_on_hand: 3, default_stock: nil, resettable: false) }
diff --git a/spec/javascripts/unit/admin/controllers/variant_overrides_controller_spec.js.coffee b/spec/javascripts/unit/admin/controllers/variant_overrides_controller_spec.js.coffee
index 450041a417..3ff397eb18 100644
--- a/spec/javascripts/unit/admin/controllers/variant_overrides_controller_spec.js.coffee
+++ b/spec/javascripts/unit/admin/controllers/variant_overrides_controller_spec.js.coffee
@@ -87,3 +87,115 @@ describe "VariantOverridesCtrl", ->
       $httpBackend.flush()
       expect(VariantOverrides.updateData).toHaveBeenCalledWith variant_overrides_mock
       expect(StatusMessage.display).toHaveBeenCalledWith 'success', 'Stocks reset to defaults.'
+
+  describe "suggesting count_on_hand when on_demand is changed", ->
+    variant = null
+
+    beforeEach ->
+      scope.variantOverrides = {123: {}}
+
+    describe "when variant is on demand", ->
+      beforeEach ->
+        # Ideally, count_on_hand is blank when the variant is on demand. However, this rule is not
+        # enforced.
+        variant = {id: 2, on_demand: true, count_on_hand: 20, on_hand: "On demand"}
+
+      it "clears count_on_hand when variant override uses producer stock settings", ->
+        scope.variantOverrides[123][2] = {on_demand: null, count_on_hand: 1}
+        scope.updateCountOnHand(variant, 123)
+
+        expect(scope.variantOverrides[123][2].count_on_hand).toBeNull()
+        dirtyVariantOverride = DirtyVariantOverrides.dirtyVariantOverrides[123][2]
+        expect(dirtyVariantOverride.count_on_hand).toBeNull()
+
+      it "clears count_on_hand when variant override forces on demand", ->
+        scope.variantOverrides[123][2] = {on_demand: true, count_on_hand: 1}
+        scope.updateCountOnHand(variant, 123)
+
+        expect(scope.variantOverrides[123][2].count_on_hand).toBeNull()
+        dirtyVariantOverride = DirtyVariantOverrides.dirtyVariantOverrides[123][2]
+        expect(dirtyVariantOverride.count_on_hand).toBeNull()
+
+      it "clears count_on_hand when variant override forces limited stock", ->
+        scope.variantOverrides[123][2] = {on_demand: false, count_on_hand: 1}
+        scope.updateCountOnHand(variant, 123)
+
+        expect(scope.variantOverrides[123][2].count_on_hand).toBeNull()
+        dirtyVariantOverride = DirtyVariantOverrides.dirtyVariantOverrides[123][2]
+        expect(dirtyVariantOverride.count_on_hand).toBeNull()
+
+    describe "when variant has limited stock", ->
+      beforeEach ->
+        variant = {id: 2, on_demand: false, count_on_hand: 20, on_hand: 20}
+
+      it "clears count_on_hand when variant override uses producer stock settings", ->
+        scope.variantOverrides[123][2] = {on_demand: null, count_on_hand: 1}
+        scope.updateCountOnHand(variant, 123)
+
+        expect(scope.variantOverrides[123][2].count_on_hand).toBeNull()
+        dirtyVariantOverride = DirtyVariantOverrides.dirtyVariantOverrides[123][2]
+        expect(dirtyVariantOverride.count_on_hand).toBeNull()
+
+      it "clears count_on_hand when variant override forces on demand", ->
+        scope.variantOverrides[123][2] = {on_demand: true, count_on_hand: 1}
+        scope.updateCountOnHand(variant, 123)
+
+        expect(scope.variantOverrides[123][2].count_on_hand).toBeNull()
+        dirtyVariantOverride = DirtyVariantOverrides.dirtyVariantOverrides[123][2]
+        expect(dirtyVariantOverride.count_on_hand).toBeNull()
+
+      it "sets to producer count_on_hand when variant override forces limited stock", ->
+        scope.variantOverrides[123][2] = {on_demand: false, count_on_hand: 1}
+        scope.updateCountOnHand(variant, 123)
+
+        expect(scope.variantOverrides[123][2].count_on_hand).toBe(20)
+        dirtyVariantOverride = DirtyVariantOverrides.dirtyVariantOverrides[123][2]
+        expect(dirtyVariantOverride.count_on_hand).toBe(20)
+
+  describe "count on hand placeholder", ->
+    beforeEach ->
+      scope.variantOverrides = {123: {}}
+
+    describe "when variant is on demand", ->
+      variant = null
+
+      beforeEach ->
+        # Ideally, count_on_hand is blank when the variant is on demand. However, this rule is not
+        # enforced.
+        variant = {id: 2, on_demand: true, count_on_hand: 20, on_hand: t("on_demand")}
+
+      it "is 'On demand' when variant override uses producer stock settings", ->
+        scope.variantOverrides[123][2] = {on_demand: null, count_on_hand: 1}
+        placeholder = scope.countOnHandPlaceholder(variant, 123)
+        expect(placeholder).toBe(t("on_demand"))
+
+      it "is 'On demand' when variant override is on demand", ->
+        scope.variantOverrides[123][2] = {on_demand: true, count_on_hand: 1}
+        placeholder = scope.countOnHandPlaceholder(variant, 123)
+        expect(placeholder).toBe(t("js.variants.on_demand.yes"))
+
+      it "is blank when variant override is limited stock", ->
+        scope.variantOverrides[123][2] = {on_demand: false, count_on_hand: 1}
+        placeholder = scope.countOnHandPlaceholder(variant, 123)
+        expect(placeholder).toBe('')
+
+    describe "when variant is limited stock", ->
+      variant = null
+
+      beforeEach ->
+        variant = {id: 2, on_demand: false, count_on_hand: 20, on_hand: 20}
+
+      it "is variant count on hand when variant override uses producer stock settings", ->
+        scope.variantOverrides[123][2] = {on_demand: null, count_on_hand: 1}
+        placeholder = scope.countOnHandPlaceholder(variant, 123)
+        expect(placeholder).toBe(20)
+
+      it "is 'On demand' when variant override is on demand", ->
+        scope.variantOverrides[123][2] = {on_demand: true, count_on_hand: 1}
+        placeholder = scope.countOnHandPlaceholder(variant, 123)
+        expect(placeholder).toBe(t("js.variants.on_demand.yes"))
+
+      it "is blank when variant override is limited stock", ->
+        scope.variantOverrides[123][2] = {on_demand: false, count_on_hand: 1}
+        placeholder = scope.countOnHandPlaceholder(variant, 123)
+        expect(placeholder).toBe('')
diff --git a/spec/lib/open_food_network/scope_variant_to_hub_spec.rb b/spec/lib/open_food_network/scope_variant_to_hub_spec.rb
index c3b2f2f8ec..aa5ce4b317 100644
--- a/spec/lib/open_food_network/scope_variant_to_hub_spec.rb
+++ b/spec/lib/open_food_network/scope_variant_to_hub_spec.rb
@@ -5,7 +5,7 @@ module OpenFoodNetwork
     let(:hub) { create(:distributor_enterprise) }
     let(:v)   { create(:variant, price: 11.11, count_on_hand: 1, on_demand: true, sku: "VARIANTSKU") }
     let(:vo)  { create(:variant_override, hub: hub, variant: v, price: 22.22, count_on_hand: 2, on_demand: false, sku: "VOSKU") }
-    let(:vo_price_only) { create(:variant_override, hub: hub, variant: v, price: 22.22, count_on_hand: nil) }
+    let(:vo_price_only) { create(:variant_override, :use_producer_stock_settings, hub: hub, variant: v, price: 22.22) }
     let(:scoper) { ScopeVariantToHub.new(hub) }
 
     describe "overriding price" do
diff --git a/spec/models/variant_override_spec.rb b/spec/models/variant_override_spec.rb
index bb799f8603..f785bf352c 100644
--- a/spec/models/variant_override_spec.rb
+++ b/spec/models/variant_override_spec.rb
@@ -35,6 +35,81 @@ describe VariantOverride do
     end
   end
 
+  describe "validation" do
+    describe "ensuring that on_demand and count_on_hand are compatible" do
+      let(:variant_override) { build(:variant_override, hub: hub, variant: variant,
+                                     on_demand: on_demand, count_on_hand: count_on_hand) }
+
+      context "when using producer stock settings" do
+        let(:on_demand) { nil }
+
+        context "when count_on_hand is blank" do
+          let(:count_on_hand) { nil }
+
+          it "is valid" do
+            expect(variant_override.save).to be_truthy
+          end
+        end
+
+        context "when count_on_hand is set" do
+          let(:count_on_hand) { 1 }
+
+          it "is invalid" do
+            expect(variant_override.save).to be_falsey
+            error_message = I18n.t("using_producer_stock_settings_but_count_on_hand_set",
+                                   scope: [i18n_scope_for_error, "count_on_hand"])
+            expect(variant_override.errors[:count_on_hand]).to eq([error_message])
+          end
+        end
+      end
+
+      context "when on demand" do
+        let(:on_demand) { true }
+
+        context "when count_on_hand is blank" do
+          let(:count_on_hand) { nil }
+
+          it "is valid" do
+            expect(variant_override.save).to be_truthy
+          end
+        end
+
+        context "when count_on_hand is set" do
+          let(:count_on_hand) { 1 }
+
+          it "is invalid" do
+            expect(variant_override.save).to be_falsey
+            error_message = I18n.t("on_demand_but_count_on_hand_set",
+                                   scope: [i18n_scope_for_error, "count_on_hand"])
+            expect(variant_override.errors[:count_on_hand]).to eq([error_message])
+          end
+        end
+      end
+
+      context "when limited stock" do
+        let(:on_demand) { false }
+
+        context "when count_on_hand is blank" do
+          let(:count_on_hand) { nil }
+
+          it "is invalid" do
+            expect(variant_override.save).to be_falsey
+            error_message = I18n.t("limited_stock_but_no_count_on_hand",
+                                   scope: [i18n_scope_for_error, "count_on_hand"])
+            expect(variant_override.errors[:count_on_hand]).to eq([error_message])
+          end
+        end
+
+        context "when count_on_hand is set" do
+          let(:count_on_hand) { 1 }
+
+          it "is valid" do
+            expect(variant_override.save).to be_truthy
+          end
+        end
+      end
+    end
+  end
 
   describe "callbacks" do
     let!(:vo) { create(:variant_override, hub: hub, variant: variant) }
@@ -51,7 +126,6 @@ describe VariantOverride do
     end
   end
 
-
   describe "looking up prices" do
     it "returns the numeric price when present" do
       VariantOverride.create!(variant: variant, hub: hub, price: 12.34)
@@ -65,7 +139,7 @@ describe VariantOverride do
 
   describe "looking up count on hand" do
     it "returns the numeric stock level when present" do
-      VariantOverride.create!(variant: variant, hub: hub, count_on_hand: 12)
+      VariantOverride.create!(variant: variant, hub: hub, count_on_hand: 12, on_demand: false)
       VariantOverride.count_on_hand_for(hub, variant).should == 12
     end
 
@@ -76,12 +150,12 @@ describe VariantOverride do
 
   describe "checking if stock levels have been overriden" do
     it "returns true when stock level has been overridden" do
-      create(:variant_override, variant: variant, hub: hub, count_on_hand: 12)
+      create(:variant_override, variant: variant, hub: hub, on_demand: false, count_on_hand: 12)
       VariantOverride.stock_overridden?(hub, variant).should be true
     end
 
     it "returns false when the override has no stock level" do
-      create(:variant_override, variant: variant, hub: hub, count_on_hand: nil)
+      create(:variant_override, variant: variant, hub: hub, on_demand: nil, count_on_hand: nil)
       VariantOverride.stock_overridden?(hub, variant).should be false
     end
 
@@ -136,17 +210,42 @@ describe VariantOverride do
   end
 
   describe "resetting stock levels" do
-    it "resets the on hand level to the value in the default_stock field" do
-      vo = create(:variant_override, variant: variant, hub: hub, count_on_hand: 12, default_stock: 20, resettable: true)
-      vo.reset_stock!
-      vo.reload.count_on_hand.should == 20
+    describe "forcing the on hand level to the value in the default_stock field" do
+      it "succeeds for variant override that forces limited stock" do
+        vo = create(:variant_override, variant: variant, hub: hub, count_on_hand: 12, default_stock: 20, resettable: true)
+        vo.reset_stock!
+
+        vo.reload
+        expect(vo.on_demand).to eq(false)
+        expect(vo.count_on_hand).to eq(20)
+      end
+
+      it "succeeds for variant override that forces unlimited stock" do
+        vo = create(:variant_override, :on_demand, variant: variant, hub: hub, default_stock: 20, resettable: true)
+        vo.reset_stock!
+
+        vo.reload
+        expect(vo.on_demand).to eq(false)
+        expect(vo.count_on_hand).to eq(20)
+      end
+
+      it "succeeds for variant override that uses producer stock settings" do
+        vo = create(:variant_override, :use_producer_stock_settings, variant: variant, hub: hub, default_stock: 20, resettable: true)
+        vo.reset_stock!
+
+        vo.reload
+        expect(vo.on_demand).to eq(false)
+        expect(vo.count_on_hand).to eq(20)
+      end
     end
+
     it "silently logs an error if the variant override doesn't have a default stock level" do
       vo = create(:variant_override, variant: variant, hub: hub, count_on_hand: 12, default_stock:nil, resettable: true)
       Bugsnag.should_receive(:notify)
       vo.reset_stock!
       vo.reload.count_on_hand.should == 12
     end
+
     it "doesn't reset the level if the behaviour is disabled" do
       vo = create(:variant_override, variant: variant, hub: hub, count_on_hand: 12, default_stock: 10, resettable: false)
       vo.reset_stock!
@@ -157,4 +256,8 @@ describe VariantOverride do
   context "extends LocalizedNumber" do
     it_behaves_like "a model using the LocalizedNumber module", [:price]
   end
+
+  def i18n_scope_for_error
+    "activerecord.errors.models.variant_override"
+  end
 end